Thoughtful Money with Adam Taggart

ALERT: Liquidity Has Peaked & That Means Lower Stock Prices Ahead | Michael Howell

118 snips
Jan 8, 2026
Michael Howell, Founder and CEO of Crossborder Capital, is back with insights on global liquidity cycles and market trends. He predicts that liquidity has peaked, forecasting lower stock prices through 2026. Howell highlights the divergence between a stronger real economy and weakening financial markets, while cautioning investors about rising risks. He discusses asset classes to favor, emphasizing commodities and bonds, and offers advice on navigating the upcoming tough market stretch. Stay tuned for his compelling take on China’s liquidity impacts and strategies for challenging times ahead.
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INSIGHT

Global Liquidity Has Peaked

  • Global liquidity likely peaked around Q4 2025 and has lost upward momentum.
  • Michael Howell says this inflection, not Fed tightening, is the main market risk driver.
INSIGHT

Presidential Year Two Pressure

  • Year-two of a presidential term often sees earnings growth but PE compression.
  • Howell attributes the PE squeeze to liquidity tightening as real economy absorbs funds.
INSIGHT

Liquidity And Risk Appetite Aligning Down

  • Liquidity and investor risk appetite are both starting to fall, creating a problematic market backdrop.
  • Howell warns that simultaneous drops in liquidity and risk exposure compress returns.
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